In this watershed year of 2012 Rainshadow Labs is continuing our mission as a truly sustainable enterprise; one that is committed to a triple bottom line that includes the People, the Planet and a fair Profit. Our vision of a socially conscious enterprise recognizes that we cannot be committed to one without consideration of the other. So for Rainshadow Labs the TBL captures an expanded spectrum of values and criteria for measuring organizational and societal success: economic, ecological, and social. With this vision in mind we seek to source raw materials that are truly sustainably and thoughtfully grown; raw materials that measure success the way we do; we seek to participate in addressing social issues that our government is ill-equipped to address and this is exemplified in our work with an Industry and mentally and physically disabled adults, the Fruit Tree Planting Foundation and Fences For Fido and finally, we seek to provide our shareholders and employees with a sustainable return on their investment.

With all of that in mind we have installed a new automated pricing software system that reflects in real time the volatility of our current raw materials; a system that is well equipped to more accurately reflect the reality of this very volatile marketplace. As such you will note new prices for the bulk of our products. Included in these changes are price increases and price decreases.

and demand we are experiencing dramatic price fluctuations every day. Our new pricing software will allow us to respond to this very volatile raw materials marketplace. By way of customer education, a specific example of this fluctuation has been in the price and availability of jojoba oil. There was a world-wide shortage of jojoba oil beginning in the fall of 2010 and this shortage continues today. This shortage has been met with a surge in demand allowing vendors to put a premium price on their raw materials to customers like ourselves thus creating tremendous inflation for all products that use jojoba oil.

Likewise geranium has dropped 46% this past year. In this case our new pricing system will allow us to pass along this decrease to our customers for all off the shelf products and custom products that utilize geranium essential oil.

Please know that we value your business immensely and that we will continue to do everything we can to run an efficient organization; an organization that is committed to passing this efficiency along to the people and the planet that makes our company successful!